Procurement process
About this guide
Learn how the South Australian Government buys goods and services, and what suppliers can expect at each stage of the process.
The South Australian Government buys goods and services in different ways. Each agency has its own procurement requirements and policies however there are standard rules and processes that apply across government.
Each buying process is tailored to suit the specific requirements needed by an agency. However, most follow the same key stages and steps.
What are the stages of the procurement process?
For procurements over $55,000 (including GST), agencies will generally invite businesses to submit bids through a formal procurement process. While the process may vary, it typically follows the stages outlined below.
Planning stage
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Before seeking bids, government agencies define the business need and the outcomes they are trying to achieve.
Agencies work with communities, clients, industry/businesses, and other stakeholders to understand the business need and identify the goods or services required.
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To achieve value for money, agencies need to understand the market and engage effectively with suppliers.
Agencies explore the market to understand supplier capability, identify potential providers and assess competition. This can include industry briefings, market research, supplier meetings and other forms of market engagement.
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The South Australian Government is committed to providing businesses with early visibility of upcoming procurement opportunities.
Agencies publish planned procurement activities on Supplier Hub SA at least 3 months before seeking bids. This gives businesses time to prepare, assess opportunities and decide whether they are a good fit for their products and services.
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Before seeking bids, agencies develop a buying strategy that outlines how they will approach the market and achieve value for money.
The strategy considers business needs, market conditions, risks and opportunities, and sets out how bids will be evaluated and procurement outcomes achieved. The strategy must be approved by the appropriate delegate before the procurement is released.
Sourcing stage
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Government agencies release tender documents that explain the opportunity and how suppliers can respond.
Depending on the procurement, agencies may:
- publicly advertise an opportunity and invite any interested businesses to respond through SA Tenders and Contracts
- invite selected businesses to submit a bid
- in limited circumstances, invite a single business to submit a bid
Government may use different document types when approaching the market, including:
- Expression of Interest (EOI): usually the first stage in a multi-stage procurement, inviting businesses to express interest in supplying goods or services
- Request for Quote (RFQ): typically used for lower value, low risk or commonly purchased goods and services
- Invitation to Supply (ITS) (also referred to as a Request for Tender): typically used for higher value or more complex procurement requirements.
Suppliers prepare and submit their responses in accordance with the requirements and timeframes set out in the tender documentation.
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Once the tender closes, all compliant bids are assessed in line with the buying strategy.
An evaluation team will read and assess each bid, giving it a score against each of the evaluation criteria. The evaluation team may seek further information from businesses to help them in finalising the evaluation.
Following the evaluation, the evaluation team recommends preferred supplier(s) that provide the best value for money. The recommendation is then approved before a contract is awarded.
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Before a contract is awarded, the selection of the preferred supplier(s) must be approved by the appropriate government delegate. If a contract is awarded to a non-SA Business, the Chief Executive will sign off the selection.
The preferred supplier(s) may be invited to negotiate aspects of the contract before it is finalised. This may include clarifying requirements, agreeing contract terms or resolving any outstanding issues.
Once all negotiations are complete a contract can be executed.
Management stage
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All businesses that submit a bid are notified of the selection outcome and given an opportunity to receive feedback.
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Once the contract is executed details of the contract may be disclosed on the SA Tenders and Contracts website.
Before commencing the contract, the contract manager and the supplier meet to discuss expectations and establish how to work together.
Most contracts will be supported by a contract management plan which outlines how the contract will be managed.
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Throughout the contract, the contract manager and supplier work together to monitor performance, address issues and ensure contractual obligations and outcomes are achieved.
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Before the contract expires the agency will review if the goods or services are still required and consider the best approach to meet future needs.
This process may include discussions with suppliers and stakeholders about what worked well and where improvements could be made.
If a new procurement is required, the opportunity may be published on Supplier Hub SA.
Supporting resources
Explore additional resources and guidance to learn more about government procurement.
SA Procurement Framework
Access the South Australian Government’s procurement policies, guides and principles that outline how procurement is managed.
Supplier Hub SA
View upcoming procurement opportunities across government to help you plan for future work.
SA Tenders and Contracts
Search current opportunities and awarded contracts published by
South Australian Government agencies.
Value for money guideline
Learn how value for money is assessed in government procurement and what it means for suppliers.
Frequently asked questions
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There is no single registration process that automatically makes a business a government supplier. To supply goods or services to government, suppliers need to respond to procurement opportunities published by public authorities.
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Future procurement opportunities are identified through the Forward Procurement Plan, which can be accessed through Supplier Hub SA. If the procurement process is still in planning, you will be able to contact the agency through the published contact person.
Open tenders and other market opportunities are published on SA Tenders and Contracts. Suppliers should register on this platform and keep their contact details and business information up to date to receive relevant notifications and access procurement opportunities.
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While not every government procurement opportunity is advertised as an open tender, planned procurement activities valued at over $55,000 are generally published in the Forward Procurement Plan on Supplier Hub SA at least three months before the expected procurement activity.
The Forward Procurement Plan provides suppliers with early visibility of future opportunities and details of the agency contact who can be approached to discuss the requirement. If you are interested in supplying to government, regularly reviewing the Forward Procurement Plan can help you identify and prepare for upcoming opportunities.
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An approach to market is the way government invites suppliers to respond to a procurement opportunity. It may be open to all suppliers, limited to selected suppliers, or direct to one supplier where the policy requirements and approvals are met. The approved approach is based on value, risk, complexity, market analysis and the procurement objective.
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Value for money is not simply the lowest price. It is achieved by balancing whole-of-life cost with quality and other relevant financial and non-financial factors, including the supplier's capability, risks, contract outcomes and contribution to the South Australian economy where relevant.
Related resources
Explore related resources to learn more about procurement and working with the
South Australian Government.
Definition of
Goods and Services
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